As more and more exchange traded fund (ETF) providers and mutual fund managers get in line to offer actively managed funds, many are wondering if this is the next wave in the industry.
Top mutual fund companies are considering entering the actively managed ETF business to expand their offerings. Among those who have already joined in or have filed to do so include John C. Hancock Funds, T.Rowe Price Group and PIMCO. [Read about Hancock’s filing here.]
Jessica Toonkel Marquez for Investment News reports that there are now 15 actively managed ETFs on the market, and the number is expected to rise to 40. The number of providers offering such funds could rise to 15 from the current seven. [Why are big names attracted to active ETFs?]
The issue of daily disclosure of holdings within the funds has been the primary obstacle, because providers are concerned about the potential for front-running as well as the effect that such disclosure would have on mutual fund shareholders the ETFs mimic.